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Massage Heights Franchise ProfileHealth & Beauty Franchises > Spas |
What Is the Initial Investment for a Massage Heights Franchise?
To open a Massage Heights franchise, you will need to prepare for an initial investment ranging from $472,199 to $551,771. This includes a franchise fee of $49,500. Additionally, you should consider ongoing costs such as a 6% royalty fee and a 3% marketing fee. It's crucial to have cash on hand between $472,199 and $551,771, along with a net worth of $500,000 to $1,000,000 to qualify for franchise ownership.
What Are the Financial Performance Metrics for Massage Heights Franchisees?
Massage Heights franchisees can expect an average annual revenue of approximately $1,039,409 per unit, with a median annual revenue of $947,687. The revenue can vary significantly, with the lowest reported annual revenue at $305,995 and the highest at $2,938,639. Notably, franchisees typically achieve breakeven within 12 months, making this a potentially lucrative investment for those who manage their operations effectively.
What Ongoing Costs Should You Anticipate as a Massage Heights Franchisee?
Franchisees should be aware of various ongoing expenses that will impact their profitability. Key costs include rent, estimated at around $22,000 for three months, marketing and advertising expenses of approximately $15,000 annually, and management and administrative salaries totaling about $100,000. Overall, the average annual running expenses amount to roughly $169,100, which franchisees must factor into their financial planning.
How Many Massage Heights Franchise Units Are Currently Operating?
As of 2023, there are a total of 104 Massage Heights units, with 103 being franchised and only 1 corporate-owned unit. The number of franchised units has slightly fluctuated over the years, with 106 units in 2021 and 102 in 2022. This steady presence in the market reflects the brand's resilience and ongoing appeal to both franchisees and customers alike.
Massage Heights Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Massage Heights Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 110 | 105 | 104 |
| Net Change YoY | -5 | -1 | |
| Franchised Units | 106 | 102 | 103 |
| Net Change YoY | -4 | 1 | |
| Corporate Units | 4 | 3 | 1 |
| Net Change YoY | -1 | -2 |
Investment Overview
The initial investment for a Massage Heights franchise ranges from $472,199 to $551,771, with an initial franchise fee of $49,500. Franchisees are also subject to a royalty fee of 6% on gross sales and a marketing fee of 3%. To qualify, potential franchisees must have a net worth between $500,000 and $1,000,000, ensuring they have the financial stability to support their business.
Revenue Potential
Massage Heights franchises generate strong revenue, with an average annual revenue per unit of approximately $1,039,409. The median annual revenue is reported at $947,687, while individual unit performance can vary significantly, with the lowest annual revenue at $305,995 and the highest reaching $2,938,639. This diverse revenue potential offers franchisees opportunities for growth.
Breakeven and Payback
The breakeven period for a Massage Heights franchise is estimated at 12 months, allowing franchisees to recoup their initial investment relatively quickly. This rapid payback period is a compelling aspect for those considering entering the franchise, as it indicates the potential for a swift return on investment.
Franchise Growth
The Massage Heights franchise has experienced a stable presence in the market, with 106 franchised units in 2021, slightly decreasing to 102 in 2022, and rebounding to 103 in 2023. The total number of units has also seen some fluctuation, reflecting the brand's ongoing adaptation to market conditions.
Corporate Units
In addition to franchised locations, Massage Heights operates corporate units, which have decreased from 4 in 2021 to just 1 in 2023. This shift indicates a strategic focus on franchising as a growth model, allowing the brand to leverage franchisee investments while concentrating on supporting their franchise network.
Operating Expenses
Average annual operating expenses for a Massage Heights franchise are estimated at $169,100. Key expenses include rent, technology fees, marketing and advertising, utilities, insurance, and management salaries. Understanding these costs is essential for franchisees to effectively manage their financial performance and ensure profitability.
Frequently Asked Questions
The initial investment for a Massage Heights franchise ranges from $472,199 to $551,771, which includes the initial franchise fee of $49,500.